Tenaga Nasional Berhad (OTCMKTS:TNABY) versus Exelon (NASDAQ:EXC) Financial Review

Tenaga Nasional Berhad (OTCMKTS:TNABY) and Exelon (NASDAQ:EXC) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

80.9% of Exelon shares are held by institutional investors. 0.1% of Exelon shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Tenaga Nasional Berhad has a beta of -0.4, suggesting that its stock price is 140% less volatile than the S&P 500. Comparatively, Exelon has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Dividends

Tenaga Nasional Berhad pays an annual dividend of $0.38 per share and has a dividend yield of 3.0%. Exelon pays an annual dividend of $1.60 per share and has a dividend yield of 3.7%. Tenaga Nasional Berhad pays out 86.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Exelon pays out 57.3% of its earnings in the form of a dividend. Exelon has increased its dividend for 3 consecutive years. Exelon is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tenaga Nasional Berhad and Exelon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenaga Nasional Berhad	0	0	0	0	0.00
Exelon	2	5	6	1	2.43

Exelon has a consensus price target of $49.92, indicating a potential upside of 14.08%. Given Exelon’s stronger consensus rating and higher possible upside, analysts plainly believe Exelon is more favorable than Tenaga Nasional Berhad.

Earnings & Valuation

This table compares Tenaga Nasional Berhad and Exelon”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenaga Nasional Berhad	$11.58 billion	N/A	$788.25 million	$0.44	29.25
Exelon	$24.32 billion	1.82	$2.46 billion	$2.79	15.68

Exelon has higher revenue and earnings than Tenaga Nasional Berhad. Exelon is trading at a lower price-to-earnings ratio than Tenaga Nasional Berhad, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tenaga Nasional Berhad and Exelon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenaga Nasional Berhad	N/A	N/A	N/A
Exelon	11.60%	10.28%	2.57%

Summary

Exelon beats Tenaga Nasional Berhad on 16 of the 17 factors compared between the two stocks.

About Tenaga Nasional Berhad

Tenaga Nasional Berhad engages in the generation, transmission, distribution, and sale of electricity in Malaysia and internationally. The company operates and maintains thermal generation facilities and hydroelectric power generating schemes; and manages and operates the National Grid that is connected to Thailand's transmission system, as well as Singapore's transmission system at Senoko. It also supplies fuel and coal for power generation; generates, distributes, supplies, deals in, and sells various energy sources, as well as provides related technical services; develops district cooling systems; operates and maintains co-generation works; manufactures, sells, and repairs distribution, power, and earthing transformers; and develops, owns, and manages dry bulk terminals. In addition, the company provides turnkey contracting of transmission substations; repair and maintenance services to heavy industries and other related services; operation and maintenance services on telecommunication equipment and data centres; higher education, and telecommunication and IT infrastructure solution and services; research and development services in the areas of engineering, information technology, business, accountancy, and liberal studies; and training courses. Further, it offers insurance and reinsurance products, technical and laboratory, consultancy, and other services; manufactures and distributes power and general cables, and aluminum rods; operates an integrated district cooling systems for air conditioning systems of office buildings; assembles, manufactures, tests, reconditions, and distributes high and medium voltage switchgears, and control gears for transmission and distribution of electric power; and operates wind assets. It primarily serves commercial, industrial, and residential customers. The company was founded in 1949 and is headquartered in Kuala Lumpur, Malaysia.

About Exelon

Exelon Corporation, a utility services holding company, engages in the energy distribution and transmission businesses in the United States and Canada. The company is involved in the purchase and regulated retail sale of electricity and natural gas, transmission and distribution of electricity, and distribution of natural gas to retail customers. It also offers support services, including legal, human resources, information technology, supply management, financial, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement services. It serves distribution utilities, municipalities, and financial institutions, as well as commercial, industrial, governmental, and residential customers. Exelon Corporation was incorporated in 1999 and is headquartered in Chicago, Illinois.